Gross_Margin_3_Scenarios_with_Import_Example_90EUR.pptx

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1. Gross Margin Analysis – Multi-Scenario Meril India → Meril Netherlands → Hospital (Netherlands)

2. Scenario – Selling Price €120 Selling Price to Hospital: €120 Transfer Price from Meril India: €90 Freight: €1.75 | Customs: €0.2 | Regulatory: €10.0 | Warehouse: €2.18 Landed Cost (ex-VAT): €104.13000000000001 Gross Margin: €15.87 (13.22%) Selling Price: €120 Landed Cost: €104.13 Margin: €15.87

3. Scenario – Selling Price €250 Selling Price to Hospital: €250 Transfer Price from Meril India: €90 Freight: €1.75 | Customs: €0.2 | Regulatory: €10.0 | Warehouse: €2.18 Landed Cost (ex-VAT): €104.13000000000001 Gross Margin: €145.87 (58.35%) Selling Price: €250 Landed Cost: €104.13 Margin: €145.87

4. Scenario – Selling Price €500 Selling Price to Hospital: €500 Transfer Price from Meril India: €90 Freight: €1.75 | Customs: €0.2 | Regulatory: €10.0 | Warehouse: €2.18 Landed Cost (ex-VAT): €104.13000000000001 Gross Margin: €395.87 (79.17%) Selling Price: €500 Landed Cost: €104.13 Margin: €395.87

5. Import Cost Breakdown – India → Netherlands (DES) Per‑Unit Cost Components (ex‑VAT): • Transfer Price (Meril India → Meril NL): €90.00 • International Freight (air): €1.75 • Customs/Brokerage Fees: €0.20 • Regulatory Compliance (MDR/EU‑AR/Importer): €10.00 • 3PL Warehousing & Distribution: €2.18 = Landed Cost (ex‑VAT): €104.13 / unit Shipment Totals (1,000 units): • Goods Value: €90,000 • Air Freight: €1,750 • Cargo Insurance (~0.3%): €270 • Brokerage/Customs Fees: €200 • Regulatory (amortized): €10,000 • 3PL Warehousing/Distribution: €2,180 VAT Cash‑Flow (21% on CIF): €19,324 (reclaimable) India (Meril India) Air Freight & Insurance NL Customs Clearance VAT 21% (cash‑flow) 3PL NL Warehouse Hospital Deliveries Notes: Duty assumed 0% for HS 9021 class (confirm with broker). Import VAT is reclaimable by Meril Netherlands B.V. if VAT‑registered. Regulatory cost reflects MDR Class III (NB/EU‑AR/importer) amortization.

6. Example Import Scenario – Coronary DES (Class III, MDR) Origin: Mumbai (India) → Arrival: Amsterdam (NL) Shipment: 1,000 units (1 pallet, ~100 kg chargeable) Transfer price: €90/unit → Goods value: €90,000 Incoterm: DAP Amsterdam (seller pays to NL arrival; buyer clears & pays VAT) A) International Freight & Insurance • Air freight @ €8/kg = €800 • Cargo insurance 0.3% of value = €2,400 • Export handling India = €200 Subtotal: €3,400 (≈ €3.40/unit) B) NL Customs Clearance & VAT (21% reclaimable) • CIF: €91,070 → Duty 0% • VAT (cash flow): €19,125 • Broker fees: €200 (≈ €0.20/unit) C) Regulatory Compliance (EU MDR) • NB + EU-AR + admin: €45,000/year • Importer fee: €1/unit • Annual NL vol: 5,000 units → Amortized €10/unit D) 3PL Warehousing & Distribution (NL) • Inbound/QC: €35 • Storage: €144 (12 weeks) • Pick & pack: €2,000 Subtotal: €2,179 (≈ €2.18/unit) E) Per-Unit Landed Cost (ex-VAT): • Freight + insurance + export: €3.40 • Customs fees: €0.20 • Regulatory: €10.00 • 3PL: €2.18 ≈ €15.78/unit VAT 21% is recoverable; duty assumed 0% (verify HS code). Practical tips: Ensure MDR compliance, EORI registration, BTI for HS code, and VAT deferment if applicable.